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Which of the Following Statements About Net Profit Margin Is

Question 143

Multiple Choice

Which of the following statements about net profit margin is not correct?


A) If a company's net profit margin increases from 12% to 18% this would be considered an improvement in profitability.
B) A company with a net profit margin of 15% is using 85% of each dollar of revenue to cover costs and expenses.
C) Net profit margin indicates how much net income is earned for each dollar of revenue.
D) A company with a net profit margin of 8% may be evaluated differently depending upon which industry it is in.
E) All of these statements are correct.

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